Kemi bioproduct mill (Finland)

The Swedish Export Credit Agency (EKN) is considering a guarantee for financing of equipment to the company Metsä Group’s construction and operation of a new bioproduct mill, which will produce pulp and other wood products.

The new mill, which will be the largest wood processing unit in the northern hemisphere, will produce 1.5 million tons of pulp per year and replaces an existing smaller mill. The annual wood demand of the new mill is 7.6 million cubic meters, which translates to an increase of 4.5 million cubic meters per year compared with the old mill. The wood demand will be met through increased harvesting levels mainly across Finland’s Lapland, Kainuu and Northern and Central Ostrobothnia regions, complemented with imports from i.a. Russia and Sweden.

The project has a preliminary classification as category A. The key environmental and social risks and impacts from the mill concern air quality and waste. The risks linked to increased sourcing of wood relate to the forests’ ability to bind carbon and act as a “sink” for greenhouse gases, and to forest biodiversity.

Documentation and information requirements in Finland for this type of project are extensive and include impact assessment, stakeholder consultation and issuance of an environmental permit. The original Environmental and Social Impact Assessment (ESIA) of the project is available in Finnish in the following web link: https://www.ymparisto.fi/download/noname/%7B9D63E873-EA57-4170-A327-EAE2E736AF3C%7D/146513

EKN conducts an Environmental and Social (E&S) due diligence of the project based on the existing ESIA. EKN is engaged in close dialogue with involved parties to ensure that risks are managed in line with international standards. 

The information was published on EKN´s website www.ekn.se on September 17th, 2020. Comments on the project can be made within at least 30 days. This procedure is in accordance with the OECD Recommendation on Common Approaches for Export Credit Agencies (ECAs).

Web page last updated 21 Sep 2020